Domestic Travel Reimbursement

Travel reimbursements is covered in detail in the Handbook of Business Procedures (HBP).

There is a reimbursement checklist that may be helpful for people new to the process. Note: It combines domestic and international and is meant for local (as in sponsored, not state) funds only. Also, 100% of the links contained in that checklist happen to be broken. Just use it as a guide so you don't forget anything! 

Below is a summary of travel policies that impact reimbursement.

• UT traveler can be reimbursed ONLY for their own travel (this includes students and non-employees)
  To clarify: If traveler A pays for any portion of traveler B's costs, any receipts submitted for traveler B's costs will be reimbursed to traveler B. And it will be between A & B to settle up. 
  Travelers sharing lodging should each be reimbursed half - note roommate name/org in voucher.
   
• Any state tax (Occupancy tax) assessed on lodging in Texas must be removed from reimbursement. 
  Exception: If hotel refused to honor a presented exemption certificate, traveler can be reimbursed tax -you'll need to include circumstances in the document notes, as well as communicate with UT's Travel Desk that state comptroller needs to be notified about hotel's refusal.
  • State employees are not exempt from county or municipal hotel occupancy taxes.
     
• State account (14 and 20 accounts) travel reimbursement needs to be separated from voucher from local funds (sponsored research funds); signature is required on all travel vouchers for state funds (including subsequent transfers) --the different requirements make it necessary to split the reimbursement when both types of funds are being used.
   
• Travel reimbursement voucher must identify all duty points and non-duty destinations, nature of business conducted at each location, and spell out names instead of using only abbreviations or acronyms. 
   
• Travel expenses not reconciled within 60 days require justification for lateness. Late reimbursement requests require additional approval, may run risk of being disallowed or reported as taxable income.
   

• Cancellation or Change Charges

  Cancellation/change reimbursable only if charge incurred for business reason, or exception-based reason listed on Texas Comptroller of Public Accounts, Textravel Exceptions page.
  Voucher must specify reason for cancellation and proof of payment must be submitted.

• Free or Discounted Travel

  No expense incurred = no reimbursement.
  Free transportation/lodging in exchange for mileage or credit card points does not constitute expense.
  Reimbursement of discounted travel is limited to the lesser of: 
  
    1. Cost of obtaining the discount
    2. Amount of the discount
    3. Maximum reimbursement allowed for that type of travel expense
  
  Original, complete, unaltered receipts from seller of discount must be submitted with voucher
  Voucher must contain detailed description of discount

• Weekend Travel

  If employee returns home for weekend between dates of UT-related travel, reimbursement is limited to the lesser of either the average of UT travel-related costs per applicable day (had the traveler remained at the duty destination), or costs associated with returning home and going back to UT travel-related location.

  Reimbursable expenses are limited if an employee leaves a duty point and travels for personal reasons to a location other than home for the weekend. Weekend travel expenses may not exceed the average weekday travel cost multiplied by the number of days in the weekend.

• All-Inclusive Registration: If meal/lodging mandatory and included in registration fee, they're fully reimbursable as part of registration fee, if not mandatory, reimbursement may not exceed meal/lodging limits, must be separated from registration in voucher. Original, complete receipts from seller of package must be submitted with voucher

• Expenses Incurred while Qualifying for Discount Airfare

  When employee stays extra days at a duty point to qualify for discount airfare, employee may be reimbursed for travel expenses incurred if additional expenses plus discount airfare are less than or equal to the average coach airfare. It must be in the best interest of the University to allow the employee to be absent for the extra days. The extra days may occur before or after the official state business.
  Traveler should calculate this in advance of trip to ensure there is a discount for the university.

• Business-Related Group Meal During Travel

  If UT traveler hosts or attends group meal for UT business related purposes, remove that expense from the travel reimbursement and process as an entertainment expense via the OOEF/VPE route.

• Other Unallowable Expenses

  • Alcoholic beverages and associated tips (unless expressly allowed per sponsor/donor)

  • Personal travel - including personal costs incurred at UT destination above what would have been incurred for UT business travel

  • Travel to other destination(s) during official university travel (including near-by non-duty locations)

  • Meals and lodging in traveler's headquarters - Austin in most cases (unless stated in agreement covering costs)

  • Meals when there is no overnight stay

  • Tips (disallowed on state funds only), limited to 20% of PRE-TAX total on local (sponsored) funds

  • Upgrades & optional services, including for airfare, hotel, other transportation (except Southwest Early Bird)

  • Airfare originating from location other than home-base (without a comparison itinerary)

  • More than single occupancy hotel costs (due to non-UT travelers)

NOTE: Previous reimbursement of unallowable costs is not justification for additional unallowable costs.

Allowability and Allocability are terms that get thrown around quite a bit in Research Administration. Some folks understand one or both, and some don't! Let's break it down, since they are both important toward ensuring compliance with travel on sponsored research funds at UT. 

Allowability

A direct cost is allowable when it is necessary for the project. The allowability of something means that the type of cost, whatever it is, is something essential to whatever it is we are trying to get done on the project. An obvious example would be something like...

• PI needs the latest bells-and-whistles high powered something or other specifically to complete the research on the project, so the cost of that high powered something or other is described in the project plan, included in the budget, and upon execution of the award, the PI gets to buy that high powered whatsit thingy, job done.
   
  • But the PI also said the top-of-the-line carrying case made out of sparkley red rhinestones and beveled gold handles was also super necessary for taking the new fandlged thinymabob between the two project locations. 
     
    • Not surprisingly, the sponsor, prior to approving the agreement for the project, requested removal of the cost of the sparkley carry thingy and let the PI know that the plain black cloth carrying case included with the purchase will work just fine. 
      
      The world is less sparkley this way, but hey, we're not going to jail! Yay!
       

An allowable direct cost must:

• Conform to the terms and conditions of the award itself (give us a holler if you need help finding them);
• Be consistent with UT’s policies (check out the governance and policy links below);
• Be treated consistently as a direct cost (as opposed to an indirect cost) when incurred for the same purpose in like circumstances (it's kind of like... refraining from double-dipping);
• Not be included as a cost or cost share on another award (it's definitely like refraining from double-dipping);
• Be adequately documented (if it ain't written down all Oh-fficial-like, it don't exist!)

 

-Along with Allowability comes REASONABLENESS. Let's jump into that for a moment...

Reasonableness

A direct cost is reasonable when it does not exceed that which would be incurred by a prudent person.

Reasonable costs must be:

• Ordinary and necessary for the proper and efficient performance of the award;
• Conform to the terms of the award, all applicable regulations, and sound business practices;
• Conform to market prices for comparable goods and services in the area;
• Be incurred with all responsibilities to the University, the public, and the sponsor having been considered;
• Be consistent with UT policies and practices.

 

Finally, last up is the one that gives folks the most trouble...

Allocability

A cost is allocable to a particular award if the relative benefit of the goods or services (or travel) can be assigned to specifically that award. The cost must be incurred specifically for the award, and be charged to the award proportionally to the benefit the award received.

Put more simply:
You need to be able to identify and explain how the travel specifically benefits the award.

It's not enough to say that travel is an allowable cost and that the costs being incurred are reasonable. The question is: How much of the allowable, reasonable costs can be charged to the award before of how the service or product benefits the award and helps the researchers achieve its goals and deliverables. 

• If you are charging the total amount of travel costs to a single award, then what your'e saying is that all the travel, all the costs associated with it benefit this award, and here's how: -insert explanation here-
   
• If the travel costs benefit more than one award or source of funding, an explanation needs to be including that makes this clear.
   
• If you're only charging a portion of your travel to a sponsored award and the rest to other sources, you have to be able to explain how you decided the portion to be charged to the sponsored project.
  • Just splitting it down the middle isn't an option with sponsored funds.
  • There has to be a methodology involved.
    
    So what methodology should you use?
    • PIs have the option of coming up with their own, but OSP has offered up some suggestions to help explain the concept of methodologies for allocability.

The consolidated U.S. travel reimbursement process outlined below is informed by:

1. The Handbook of Business Procedures Part 11.5 (parts 5.1 - 5.5)
2. Requirements outlined on the OSP & OVPR Direct Cost and Allocation webpages
3. CoLA-specific guidelines on travel processes

 

REQUIRED DETAILS for Travel Reimbursement include:    

• RTA # generated from approved travel authorization via VE5/VE6
• Receipts and invoices from travel, dated, itemized, showing proof of payment and/or zero balance
• Credit card statements, if applicable to serve as proof of payment as needed

Costing categories that require receipts:
Airfare (itinerary and invoice)
Extra baggage fees
Lodging (folio & proof of payment)
Conference Registration
Rental car & Fuel costs
City-to-City transportation (taxi, train, bus, shuttle, limo, etc.)
All per diem/food receipts for entire day, if claiming above per diem limit
  ---(including itemized and proof of payment receipts)

Costing categories that don't require receipts:
Toll road fares
Parking fees
Public transport (taxis, subways, buses) within UT business destination
Per diem within applicable limits

• Explanation and supporting documentation for any exception-based travel
• Airfare comparison in cases of coach vs first/business class, or for travel originating outside home-base
  • A VP5 Voucher for processing travel reimbursement

TWO WAYS to PROCESS Reimbursements

Direct Processing via VP5	Online CBS TRR Request
1. Fill out VP5 document	1. Fill out online CBS Travel Reimbursement Form
2. Generate VP5 Packet	2. Generate VP5 Receipt Packet
3. Route VP5 document to CoLA approver	3. Submit form and receipts to CBS
4. Drop VP5 Packet in CoLA Payment Box	4. Form routes to CBS team member
5. VP5 is approved forward by CoLA Approver	5. CBS team member fills out VP5
6. Drop VP5 Packet in AP Box	6. CBS team member generates VP5 Packet
7. VP5 is final-approved by Accounts Payable	7. CBS team member routes VP5 Packet for approval
	8. VP5 is approved forward by CoLA Approver
	9. CBS team member drops VP5 Packet in AP Box
	10. VP5 is final-approved by Accounts Payable

The CoLA Research Support Office encourages units to use Process Travel Reimbursements Directly via VP5. Use the step-by-step instructions to complete and submit the reimbursement directly. Reach out for help if you need it.

VP5 Instructions

If travel is for a Non-Employee receiving reimbursement AND HONORARIUM:
Do Not Process a VP5 - see Contracts & Professional Services

Accessing *Define
Access *DEFINE, log into the UT network with UT EID and network password, step through DUO multi-factor authentication, select FISCAL component, log into *Define, again with UT EID and network password. Navigation: *Define isn't like MS Word. It's like an editable PDF with boxes you tab through to reach. All text, no format - use tab to move forward, shift/tab to move back, type & enter - that's it! *Define automatically saves your progress each time you hit enter Entered details can be changed while document is in ‘Created’ status EXCEPT FOR NOTES - THOSE ARE PERMANENT and can be added to docs even when in progress elsewhere. If you typo the notes significantly, you can delete document (DEL in action line) and start over. If VP5 is in progress, you can recall it (REC in action line) and delete or correct. To change costs on an approved VP5, process a VT6 transfer- see transfer section for more information.
IMPORTANT: Request ACCESS to CoLA Payment DROP BOX Send email to Zeinab, include name, EID, title and department/unit and request to be added to CoLA Payment Drop Box - where DIRECTLY-PROCESSED VP5 Packets are submitted for CoLA review/approval

VP5 STEPS

1. After you log into *Define, hit enter through the 'last log in' screen, then you'll be prompted to select an option from a list, enter D for *DEFINE, and that lands you on the 'greeting screen' with messages about processing deadlines, etc.

2. To start a travel reimbursement, you'll need the RTA # from the related travel authorization. Do a search (SEA in action line) for the related VE5 or check your inbox for the FYI copy, copy the RTA # from the VE5.

3. Type VP5 in the COMMAND line, then enter. A blank VE5 will open. Type 'New' in the action line and 01 in the format line, hit enter. For some unexplained reason, *Define pops your cursor back up to the action line. Type 'NEW' again and enter. That should pop the cursor to the RTA # line. 

4. Input RTA #, hit enter. This generates a DOC ID# in the top right corner. The document is now in created status and you can find it in your inbox in YB2. 

5. The RTA # also pulls in additional information from the travel authorization, such as traveler's name, address, travel dates, voucher creation date and creator's name 

 

(more steps coming soon! - Work in progress)

More soon